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failure to meet the minimum funding standards does not disqualify
a plan. As a corollary, determination letters do not deal with
minimum funding standards.
The procedures for the issuance of determination letters are
set out in section 601.201(o), Statement of Procedural Rules.
Pursuant to section 601.201(o)(2), Statement of Procedural Rules,
a determination letter may be issued involving the provisions of
sections 401, 403(a), 405, and 501(a), generally with respect to
the initial qualification of certain plans, the initial exemption
from Federal income tax under section 501(a) of trusts forming a
part of a qualified plan, the deductibility of employer
contributions under section 404(a), and amendments, curtailments,
or terminations of such plans and trusts. However, determination
letters do not include determinations relating to other matters
pertaining to plans or trusts, specifically including issues
under section 412. See sec. 601.201(o)(2)(ii), Statement of
Procedural Rules. Thus, a plan may be deemed qualified and
receive a favorable determination letter, but fail to satisfy the
minimum funding standard of section 412. Therefore, even if the
language of the Wenger plan was approved regarding the
4(...continued)
404(a)(6) relating to the time a contribution to a plan
is deemed made for the purposes of claiming a deduction
for such contribution under section 404.
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Last modified: May 25, 2011